KUALA LUMPUR: Collaboration between 12 subsidiary companies under the Rural and Regional Ministry is expected to reduce operating costs by 10 to 20 per cent, its minister, Datuk Seri Ismail Sabri Yaakob, said today.
He said the collaboration, which began in October last year, has already boosted sales by up to 15 per cent.
"This is the first phase, and (the following phases) are still in the pipeline," he said after the signing of a memorandum of understanding (MoU) between the 12 subsidiary companies under the ministry here today.
"Today's MoU is just a formality, as the collaboration began last year.
"The 12 subsidiary companies are under three business clusters, namely manufacturing, services and tourism.
"Through this collaboration, (we intend to) enhance the production of products and services.
"In terms of (product and services) promotion, the companies could gather funds and do it together," Ismail said.
The main objective of the event is to realise the strategic cooperation initiatives of subsidiary companies under the ministry, as they adopt the National Blue Ocean Strategy in their business fields.
"This effort is in line with my suggestion to ensure that companies under the ministry improve competitiveness and thrive," Ismail added.